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This content was subject to assurance by SGS Italia S.p.A. (14 March 2014).

Engagement with local communities

Fiat Group operates under the fundamental belief that the company has a moral responsibility to contribute positively to the greater community. This belief is deeply embedded in the corporate culture and shapes the way the company acts and makes decisions.

By developing fully engaged employees who are capable of leading in the workplace and in the community, Fiat Group is building a more secure future for its industrial enterprise as well as for society as a whole.

Corporate citizenship efforts focus primarily in areas where we have operations, as this is where we can be most effective. Our presence in these communities enables us to best assess particular needs and challenges related to social, economic and cultural aspects. Through our ongoing engagement and strong relationships with community, academic and political leaders, programs can be developed for the benefit of all. While financial donations continue to play a role in our citizenship commitment, the Group's primary focus is on initiatives that strengthen communities by helping them help themselves. The Group's goal is to help build strong, self-reliant communities with an engaged and skilled workforce.

During 2013, the Group committed resources for a value of approximately €19.7 million(1) to benefit local communities. In addition to direct cash contributions and donations in kind, Fiat Group also supported local communities when permitted by company policies by encouraging employees to participate directly in volunteer activities during work hours. In the NAFTA region, Chrysler Group has a corporate policy that allows salaried employees to take part in charitable or public-service activities during normal work hours.

In order to make a sustainable improvement in local communities, the Group prefers investments designed to enhance community development (50.7% of total value of community initiatives) over simply donating money.

The Group’s 2013 activities focused on a variety of causes: 39.2% promotion of education, culture and art (scholarships accounted for 10.9%(2)); 25.1% social welfare projects addressing issues such as disability, eldercare, etc.; 12.0% emergency relief efforts; and 23.7% other areas, such as health (accounting for 19.1%).

From a regional perspective, the Group primarily made investments in Europe where 47.3% of the total resources were donated. North America, followed, with 29.2% of investments in this area and remaining funds donated in Latin America (23.3%), Asia (0.1%) and the rest of the world (0.1%).

The Fiat S.p.A. Code of Conduct best expresses the Group's commitment to community development in the following statement: “Fiat Group is aware that its decisions can have significant impacts, direct and indirect, on the local communities in which it operates” and accordingly “seeks to contribute to the social, economic and institutional development of local communities through specific programs” generally established based on engagement initiatives with the local community and impact assessments.

By engaging with the relevant stakeholders, the Group establishes a collaborative relationship with local communities and authorities, strengthening its social license to operate.

The new initiatives of the business call for the Group to “take all reasonable steps to inform those communities of relevant actions and projects and [that it] shall promote an open dialogue to ensure that their legitimate expectations are taken into due consideration.” An ongoing dialogue is ensured over time; for instance, Human Resources managers on-site continually interact and maintain dialogue with community representatives and local authorities in order to assess needs and expectations as well as monitor the impact of the company’s industrial activities.

The employees themselves are “asked to behave in a socially responsible manner by respecting the cultures and traditions of each country in which the Group operates and acting with integrity and good faith in order to merit the trust of the community.”

Fiat Group Community Investment Guidelines provide indications on how to manage the various initiatives to benefit communities and define the commitment to implementing initiatives that are consistent with each brand’s core characteristics and positioning. Every initiative is managed at the plant, company and brand level, and those that are financially significant are approved and supervised at the corporate level. A portion of the Group charitable activities is managed by The Chrysler Foundation, which supports a wide variety of charitable and community-based local and global organizations. The Foundation is an independent, non-profit organization sponsored exclusively by Chrysler Group and governed by its own Board of Trustees consisting of six corporate executives.

Specific indicators are used to measure the impact of initiatives in order to evaluate the benefit for the local community. This helps to ensure that the Group’s activities remain aligned and relevant to the current needs of the regions involved. In addition, these metrics assist in evaluating potential opportunities for development or extension of programs, as well as turning successful individual activities into long-term commitments.

Type of contributions

Fiat Group worldwide

Type of initiatives

Fiat Group worldwide

Area of intervention

Fiat Group worldwide

Destination of initiatives

Fiat Group worldwide

(1) Based on non-accounting data and calculation methods. Also includes estimates. Amounts in currency other than euros were converted at the average progressive annual exchange rate as of 31December, 2013. The reported figure doesn't include initiatives whose sole purpose is to promote a brand. Amounts refer to all Fiat Group companies worldwide.

(2) Includes scholarship granted within the corporate program and other initiatives at local level.